August 10, 2012

MIDF ups MBM Resources to 'buy'



MIDF Research upgraded MBM Resources Bhd to "buy" from "neutral," raising target price to RM4.53 from RM3.40, citing strong confidence on the company's plans to become a major car assembler and distributor from a dealership operator.

This comes despite the company's first half ended June 30, 2012 financial performance lagged the consensus' estimates.

"We believe in MBM's future plans," MIDF said in a research note on Friday. MIDF expects MBM's second half to improve given the pent-up demand and better year-on-year performance for the company's vehicle sales and autoparts.

By 0315 GMT, shares of the company remained unchanged at RM3.92, while the broader index dropped 0.08 percent. -- Reuters

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